Motivation II: Equity, Expectancy, and Goal Setting Chapter Seven

A Job Performance Model of Motivation Ability, Job knowledge Dispositions & Traits Emotions, Moods, &Affect Beliefs & Values Individual Inputs Physical Environment Task Design Rewards & Reinforcement Supervisory Support & Coaching Social Norms Organizational Culture Job Context Arousal Attention Intensity & & Direction Persistence Motivational Processes Motivated Behaviors Skills Enable, Limit

A Job Performance Model of Motivation (cont.) Individual Inputs Job Context Motivational Processes Focus: Direction, What we do Intensity: Effort, how hard we try Quality: Task strategies, the way we do it Duration: Persistence, how long we stick to it Skills Enable, Limit Performance Motivated Behaviors

Adam’s Equity Theory of Motivation The Individual-Organization Exchange Relationship Negative and Positive Inequity Expanding the Equity Concept Practical Lessons from Equity Theory Expectancy Theory of Motivation Vroom’s Expectancy Theory Research on Expectancy Theory and Managerial Implications Chapter Seven Outline

Motivation Through Goal Setting Goals: Definition and Background How Does Goal Setting Work? Insights from Goal Setting Research Practical Applications of Goal Setting Putting Motivational Theories to Work Chapter Seven Outline (continued)

Adams’ Equity Theory People strive for fairness and justice in social exchanges Cognitive perception of fairness or lack of it affects behavior Inputs – education, skills, training, effort, etc. Outputs – pay, fringe, security, recognition, etc.

A. An Equitable Situation Self Other $2 1 hour = $2 per hour $4 2 hours = $2 per hour Negative and Positive Inequity

$2 1 hour = $2 per hour $3 1 hour = $3 per hour B. Negative Inequity Self Other Negative and Positive Inequity (cont)

$2 1 hours = $1 per hour C. Positive Inequity $3 1 hour = $3 per hour Self Other Negative and Positive Inequity (cont)

Equity Sensitivity Equity Sensitivity is an individual’s tolerance for negative and positive equity. Benevolents Benevolents Sensitives Sensitives Entitleds Entitleds Equity Sensitivity

Distributive Justice: Distributive Justice: The perceived fairness of how resources and rewards are distributed. Procedural Justice: Procedural Justice: The perceived fairness of the process and procedures used to make allocation decisions. Interactional Justice: Interactional Justice: The perceived fairness of the decision maker’s behavior in the process of decision making. Organizational Justice

Lessons in Equity Theory Pay attention to what employees’ perceive to be fair and equitable Allow employees to have a “voice” Employees should have opportunity to appeal Organizational changes, promoting cooperation, etc. can come easier with equitable outcomes Failure to achieve equity could be costly Climate of justice

Expectancy: Expectancy: Belief that effort leads to a specific level of performance Instrumentality: Instrumentality: A performance  outcome perception. Valence: Valence: The Value of a reward or outcome Vroom’s Expectancy Theory Concepts

Valence Reward-cost balance Best for organization Individual motivation –Uncontrollable future events –Array of alternatives –Certainty, risk, uncertainty –Bounded rationality –Organization?

Determine the outcomes employees value.Determine the outcomes employees value. Identify good performance so appropriate behaviors can be rewarded.Identify good performance so appropriate behaviors can be rewarded. Make sure employees can achieve targeted performance levels.Make sure employees can achieve targeted performance levels. Link desired outcomes to targeted levels of performance.Link desired outcomes to targeted levels of performance. Make sure changes in outcomes are large enough to motivate high effort.Make sure changes in outcomes are large enough to motivate high effort. Monitor the reward system for inequities.Monitor the reward system for inequities. Managerial Implications of Expectancy Theory

Reward people for desired performance, and do not keep pay decisions secret.Reward people for desired performance, and do not keep pay decisions secret. Design challenging jobs.Design challenging jobs. Tie some rewards to group accomplishments to build teamwork and encourage cooperation.Tie some rewards to group accomplishments to build teamwork and encourage cooperation. Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and outcomes that lead to high effort and goal attainment.Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and outcomes that lead to high effort and goal attainment. Monitor employee motivation through interviews or anonymous questionnaires.Monitor employee motivation through interviews or anonymous questionnaires. Accommodate individual differences by building flexibility into the motivation program.Accommodate individual differences by building flexibility into the motivation program. Organizational Implications of Expectancy Theory

Goal: Goal: What an individual is trying to accomplish. Encouraging the development of goal- attainment strategies or action plans Increasing one’s persistence Regulating one’s effort Directing one’s attention Goals motivate the individual by... Task performance Goals

Difficult Goals Lead to Higher Performance. Difficult Goals Lead to Higher Performance. - Easy goals produce low effort because the goal is too easy to achieve. - Impossible goals ultimately lead to lower performance because people begin to experience failure. Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks. Specific Difficult Goals Lead to Higher Performance for Simple Rather Than Complex Tasks. - Goal specificity pertains to the quantifiability of a goal. - Specific difficult goals impair performance on novel, complex tasks when employees do not have clear strategies for solving these types of problems. Feedback Enhances The Effect of Specific, Difficult Goals. Feedback Enhances The Effect of Specific, Difficult Goals. - Goals and feedback should be used together. Insights from Goal-Setting Research

Participative Goals, Assigned Goals, and Self-Set Goals Are Equally Effective. Participative Goals, Assigned Goals, and Self-Set Goals Are Equally Effective. - Managers should set goals by using a contingency approach. Different methods work in different situations. Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes. Goal Commitment and Monetary Incentives Affect Goal-Setting Outcomes. - Difficult goals lead to higher performance when employees are committed to their goals. - Difficult goals lead to lower performance when employees are not committed to their goals. - Goal based incentives can lead to negative outcomes for employees in complex, interdependent jobs requiring cooperation. * Employees may not help each other. * Quality may suffer as employees pursue quantity goals. * Commitment to difficult goals may suffer. Insights from Goal-Setting Research (continued)

S S pecific M M easurable A A ttainable R R esults oriented T T ime bound Guidelines for Writing “SMART” Goals

In class... “It is not their motivation, it is their hitting average.” –Ron Swoboda (Major League Baseball player) on a proposal to hire a motivational consultant for a team in a hitting slump